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Legislature approves excise tax on nicotine pouches after full-day debate
Summary
The Nebraska Legislature passed LB9, creating a wholesale excise tax on alternative nicotine products including nicotine pouches, after several hours of debate over tax fairness and public health. The bill passed on final reading following a failed attempt to delay consideration.
Nebraska lawmakers passed LB9 on final reading on April 24, 2025, creating an excise tax on alternative nicotine products such as nicotine pouches.
Supporters said the bill closes a tax gap between newer nicotine products and traditional tobacco products and uses a wholesale-percent approach to capture novel product forms; opponents called the measure a regressive tax that would disproportionately hit younger and working Nebraskans.
Senator Machaela Conrad, who led an unsuccessful motion to postpone consideration, argued the body should evaluate revenue and tax policy choices together as the Legislature addresses a larger budget shortfall. "It's a regressive tax increase and we can have legitimate points of view about how…
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